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Rethinking The Growth Diagnostics Approach: Questions From The Practitioners

Author

Listed:
  • JESUS FELIPE

    (Central and West Asia Department, Asian Development Bank, Manila, Philippines)

  • NORIO USUI

    (Philippines Country Office, Asian Development Bank, Manila, Philippines)

  • ARNELYN ABDON

Abstract

The growth diagnostics methodology pioneered by Hausmannet al.(2005) is becoming a key component of the toolkit for donor agencies to formulate their operational strategies. This paper aims at clarifying the primary objectives of the approach, and at highlighting some limitations for operational use. The key to benefiting from the full potential that this approach offers lies in a proper understanding of what it does. This requires being forewarned about the indiscriminate application of the approach to any developing country, irrespective of its circumstances, for it can lead to misguided conclusions.

Suggested Citation

  • Jesus Felipe & Norio Usui & Arnelyn Abdon, 2011. "Rethinking The Growth Diagnostics Approach: Questions From The Practitioners," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 251-276.
    • Handle: RePEc:wsi:jicepx:v:02:y:2011:i:02:n:s1793993311000300
    DOI: 10.1142/S1793993311000300
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    1. William Easterly, 2002. "The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262550423, December.
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    5. World Bank, 2006. "Fostering Higher Growth and Employment in the Kingdom of Morocco," World Bank Publications - Books, The World Bank Group, number 7114.
    6. Robert Boyer, 2006. "Employment and decent work in the era of flexicurity," Working Papers halshs-00590452, HAL.
    7. Lewis, William W., 2004. "The Power of Productivity," University of Chicago Press Economics Books, University of Chicago Press, number 9780226476766.
    8. J. S. L. McCombie & A. P. Thirlwall, 1994. "Economic Growth and the Balance-of-Payments Constraint," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-23121-8, October.
    9. Dani Rodrik, 2007. "Introductiion to One Economics, Many Recipes: Globalization, Institutions, and Economic Growth," Introductory Chapters, in: One Economics, Many Recipes: Globalization, Institutions, and Economic Growth, Princeton University Press.
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    Cited by:

    1. Meerim Sydykova & Carlos Rodriguez, 2018. "Diagnosing Growth Constraints in Central Asia: The Case of the Kyrgyz Republic," Journal of Developing Societies, , vol. 34(3), pages 297-324, September.
    2. Meerim Sydykova, 2015. "Diagnosing Growth Constraints in Central Asia: The Case of the Kyrgyz Republic," ERSA conference papers ersa15p1626, European Regional Science Association.
    3. Themba G. Chirwa & Nicholas M. Odhiambo, 2021. "Binding constraints to productive investment in Malawi: A modified HRV framework," African Development Review, African Development Bank, vol. 33(1), pages 130-153, March.
    4. Ricardo Hausmann & Bailey Klinger & Rodrigo Wagner, 2008. "Doing Growth Diagnostics in Practice: A 'Mindbook'," Growth Lab Working Papers 19, Harvard's Growth Lab.
    5. Eric Kemp-Benedict & Crystal Drakes & Nella Canales, 2020. "A Climate-Economy Policy Model for Barbados," Economies, MDPI, vol. 8(1), pages 1-21, February.
    6. Jigar D. Bhatt, 2022. "Are growth diagnostics biased against the poor? Evidence from the Millennium Challenge Corporation," Development Policy Review, Overseas Development Institute, vol. 40(2), March.
    7. Harald HABERMANN & Pablo PADRUTT, 2011. "Growth Diagnostics: Strengths and Weaknesses of a Creative Analytical Framework to Identify Economic Growth Constraints in Developing Countries," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 1(7), pages 1-25, December.
    8. Dragan TEVDOVSKI & Vladimir FILIPOVSKI & Igor IVANOVSKI, 2014. "A Diagnostics Approach To Economic Growth In Small Open Economies: The Case Of The Republic Of Macedonia," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 13, pages 47-68, June.
    9. Gabrisch, Hubert, 2014. "The binding constraint on growth in less developed Western Balkan countries," MPRA Paper 60020, University Library of Munich, Germany.
    10. Matthijs Janssen, 2016. "What bangs for your bucks? Assessing the design and impact of transformative policy," Innovation Studies Utrecht (ISU) working paper series 16-05, Utrecht University, Department of Innovation Studies, revised Dec 2016.
    11. Castañeda, Gonzalo & Chávez-Juárez, Florian & Guerrero, Omar A., 2018. "How do governments determine policy priorities? Studying development strategies through spillover networks," Journal of Economic Behavior & Organization, Elsevier, vol. 154(C), pages 335-361.
    12. Mauricio SANTAMARIA SALAMANCA & Gabriel PIRAQUIVE GALEANO & Gustavo HERNANDEZ DIAZ & Norberto ROJAS DELGADILLO, 2013. "Crecimiento económico y desempleo: Retos a largo plazo," Archivos de Economía 11202, Departamento Nacional de Planeación.
    13. Michael Walton, 2023. "Adaptive Evaluation: A Complexity-Based Approach to Systematic Learning for Innovation and Scaling in Development," CID Working Papers 428, Center for International Development at Harvard University.

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    More about this item

    Keywords

    Growth diagnostics; A11; B41; O10; O20;
    All these keywords.

    JEL classification:

    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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